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PETRONAS joins LNG Canada project

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Hydrocarbon Engineering,

Shell Canada Energy, PetroChina Kitimat LNG Partnership, Diamond LNG Canada Ltd and Kogas Canada LNG Ltd have announced that Petroliam Nasional Berhad (PETRONAS) will take an equity position in LNG Canada, located in Kitimat, British Columbia (BC), Canada, through its wholly owned entity the North Montney LNG Limited Partnership (NMLLP), subject to regulatory approvals and closing conditions.

As a result of this transaction, if approved and upon closing, ownership interests in LNG Canada would be Shell Canada Energy, a subsidiary of Royal Dutch Shell plc (Shell), (40%); PETRONAS (through NMLLP), (25%); PetroChina Kitimat LNG Partnership, a subsidiary of PetroChina Canada Ltd, (15%); Diamond LNG Canada Ltd, a subsidiary of Mitsubishi Corporation, (15%); and Kogas Canada LNG Ltd (5%).

If constructed, LNG Canada participants will ship natural gas, including from BC’s vast reserves, to various countries where the imported gas could displace more carbon intensive energy sources, helping to reduce greenhouse gas emissions.

A joint venture of JGC Corp. and Fluor Corp. has been selected as the engineering, procurement and construction (EPC) contractor for the project and is currently finalising materials in preparation for a final investment decision (FID) by joint venture participants.

This newly-announced transaction does not amount to an FID which remains pending. The timing and outcome of an FID will be decided by joint venture participants based on global energy markets, and the overall competitiveness and affordability of the project.

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